Alibaba’s revenues grew 51% YoY
Alibaba (BABA) bounced back in the fourth quarter—the quarter ending in March. The company saw a slowdown in the third quarter. The company generated revenues of 93.5 billion yuan or $13.9 billion in the fourth quarter—a rise of 51% YoY (year-over-year), which beat analysts’ estimates of 91.5 billion yuan.
Alibaba posted a GAAP net income of 23.4 billion yuan or $3.5 billion. The company’s non-GAAP net income grew 42% YoY.
The company said that its mobile monthly users reached 721 million at the end of the fourth quarter. The mobile monthly users grew by 22 million sequentially and 104 million during the past year. The mobile monthly users measure the shoppers on Alibaba’s platforms.
Alibaba’s user growth is as a result of its ability to channel traffic between the range of apps it owns. Alibaba said that Taobao, its e-commerce app and Alipay, its e-Wallet, generated 30% of its total orders in its food delivery app, Ele.me.
Alibaba’s cloud business continued to prosper
Alibaba’s cloud business, which has grown into one of the world’s biggest cloud businesses and the biggest in China, continued to soar. The company said that its cloud computing business grew 76% YoY to 7.73 billion yuan or $1.15 billion during the fourth quarter. The company said that the growth was driven by the average spending per consumer.
The company is focused on expanding its business by “integrating the local consumer services business with the Alibaba ecosystem” and “penetrating into less developed cities.”
Alibaba stock has struggled for the most part of the past year due to the slowing economy. However, the company continues to see strong growth in its main businesses. Alibaba expects to profit from China’s switch from an export-oriented economy to an economy that depends on domestic consumption.